Port communicationFinancial leasing takes you flying - why should companies choose financial leasing? Many people will ask：What kind of enterprises are suitable for financial leasing? Vice President of China Association of Enterprises with Foreign Investment、Said Siming, CEO of Hengxin Financial Leasing Co., Ltd.，“For processing enterprises and enterprises that need to expand production scale，Most suitable for financial leasing。
"The popular saying is，If a company wants to produce a product，But I don’t have enough money to buy equipment，In this case, financial leasing can play a decisive role。Usually 3 to 5 years，Financing amounts range from hundreds of thousands to hundreds of millions of yuan，Very flexible。Financial leasing has become an important financing method for small and medium-sized enterprises.，What is the significance of financial leasing for small and medium-sized enterprises?
Using the leverage of financial leasing can promote the transformation and upgrading of manufacturing enterprises.，According to experts，Financial leasing has the characteristics of combining financing and property financing.，Corporate credit and guarantee when handling financing
Require
Not high，Very suitable for small and medium-sized enterprise financing。also，Financial leasing is off-balance sheet financing，Not reflected in the liability items of corporate financial statements，Does not affect the credit status of the company。This is very beneficial for small and medium-sized enterprises that need multiple channels of financing.。
Financial leasing refers to the equipment leasing business with the characteristics of financing and ownership transfer.。Right now：The lessor shall
Require
specifications、model、Equipment purchased and leased to lessees based on performance and other conditions，During the contract period, the ownership of the equipment belongs to the lessor，The lessee only has the right to use，After the contract expires and the rent is paid in full，The lessee has the right to purchase the equipment based on the residual value，Take ownership of the device。
finance lease
Advantages
one、Benefits to business 1、Broaden financing channels、Quick operation financial leasing achieves the purpose of "financing" through "financing" methods。Provides a new financing channel for enterprises，Broadened corporate financing channels。Bank loans are characterized by high thresholds、Strict review、The program is longer、The procedures are complicated、Quota is limited，Especially for some newly established enterprises、Due to poor credit status of small and medium-sized enterprises，Difficulty in obtaining bank loan funding。
The financing credit review procedure is simple、Quick operation，Funds will be available quickly。2、Flexible use of funds compared with other financing methods，The use of lease financing has relatively loose supervision on the funds provided to enterprises.，It is conducive to enterprises to make flexible capital arrangements (mainly reflected in sale and leaseback transactions)，Since the funds are obtained through the sale of assets，The company can use the funds freely)。
3、Funds obtained by enterprises leasing enterprises through the Ministry of Commerce's financial leasing pilot program that do not occupy the enterprise's credit line will not be included in the People's Bank of China's credit system.，Does not occupy the company's bank credit line，It is conducive for enterprises to carry out all-round cooperation with banks through the leasing company financing platform.、Deep innovation cooperation。
4、Improve the operating flexibility of enterprises. Operating leasing has flexible leasing methods.，Features of being able to return the lease at any time，Enterprises choose this method to introduce fixed assets，Can quickly expand production scale when market conditions are good，Flexible exit when the market shrinks，Conducive to improving the flexibility of business operations。
5、Improving your financial statements is not the same as a bank loan or a foreign government loan，Financial leasing is off-balance sheet financing，Rentals from finance leases are not reflected in the liability items of the financial statements.，Rent from finance leases can be deducted before tax in financial management。
When the lessee leases fixed assets through financial leasing，Generally, medium and long-term financing of 3 to 5 years can be obtained，Compared with using bank working capital loans or short-term commercial credit，Can improve current ratio、Quick ratio and other short-term solvency indicators，It can also relatively reduce the lessee’s asset-liability ratio(Preserve or improve lessee’s financing capabilities)、Improve asset return indicators, etc.。
6、avoid policy、Market restrictions: Many units have different policy restrictions when purchasing fixed assets.，Some come from regulators，Some come from the control of the internal management system of the headquarters，Some obstacles come from operational obstacles such as market information disclosure.。Such as various banks、credit company、National Asset Management Corporation、insurance company、listed company、Group branches, etc. use financial leasing business，Can effectively avoid these restrictions。
7、accelerated depreciation，Has tax-saving features according to the Ministry of Finance、Relevant documents and regulations of the State Administration of Taxation，"Enterprise technological transformation adopts financial leasing to lease various machinery and equipment.，The depreciation period can be determined based on the shorter of the lease term and the depreciation period stipulated by the state.，But the minimum depreciation period shall not be shorter than three years.”，Indirectly plays the role of accelerating depreciation。Enterprises can follow the most beneficial principle，Depreciate as quickly as possible，depreciation
cost
Enter the cost。
Compared with after-tax loan repayment，Obviously good for the business。8、Bank loans with a lighter principal repayment burden at maturity are generally issued in a lump sum，Return the entire sum。However, leasing companies can choose according to the financial strength of each enterprise.、Sales seasonality and other specific conditions，Customize flexible repayment arrangements for businesses，For example, deferred payment，Increasing and descending payments, etc.，Enables tenants to tailor payments to suit their business profile。
two、Benefits to banks 1、Risk Firewalls in General，The leasing company is the legal owner of the leased property，This creates a certain risk isolation，If the lessee becomes bankrupt, the lessor can directly repossess and dispose of the leased property.。at the same time，In terms of rental structure design，Leasing companies will also use corresponding external credit enhancement methods to increase credit for leasing projects.，to control risks。
2、Provide greater financial support to high-quality customers Banks are limited by the concentration of single customers，Credit extension to its high-quality customers is also subject to certain restrictions.，Through leasing companies as loan entities，Able to provide more financial support to high-quality customers。3、Increase bank intermediary business financing through the issuance of wealth management products、Factoring of accounts receivable、Interest rate swaps and other forms can increase bank intermediary business income。
three、Benefits to the government (platform companies) 1、Broadening financing channels can open up new financing channels through leasing，And the rental funds can be used flexibly，Can be used as capital，This will make an outstanding contribution to the government's raising of capital for infrastructure construction projects (infrastructure construction projects must have a certain proportion of capital to obtain bank loan support)。
2、Revitalize fixed assets，Improve capital efficiency through sale and leaseback model，Revitalize the fixed assets invested by the government (pipeline network、building, etc.)，Release the government’s initial investment funds，Allowing the government to have more funds to reinvest in fixed assets。Also through the financial leverage of leasing，Bring investment multiplier effect。3、Improve financial statements 4、avoid policy、Market restrictions 5、accelerated depreciation，With tax-saving features 6、The burden of repaying the principal upon maturity is lighter
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